Post on 28-Oct-2019
ii Report of the Panel of Eminent Persons
Table of contents
UNCTAD Secretary-General's Panel of Eminent Persons Second Report. Addressing key economic issues to advance sustainable development: Ideas for actions ............................................. 1 UNCTAD Today and Tomorrow. Reflections by Supachai Panitchpakdi, Secretary-General of UNCTAD on the Second Report of the UNCTAD Panel of Eminent Persons ...... 21
iv Report of the Panel of Eminent Persons
UNCTAD Secretary-General's Panel of Eminent Persons
SECOND REPORT
Addressing key economic issues to advance sustainable development: Ideas for actions
vi Report of the Panel of Eminent Persons
Table of contents
Preface by the Secretary-General of UNCTAD ......................................................... vii Letter of transmission from the two co-chairs of the Panel of Eminent Persons ....... viii Members of the UNCTAD Panel of Eminent Persons ................................................ ix Summary of recommendations ................................................................................ xv Introduction ............................................................................................................. 1
A. Taking stock ................................................................................................................... 1
B. Looking ahead: Core values of development-centred globalization ............................ 5
C. Issue areas: Ideas for actions ........................................................................................ 8
1. Global economic and financial governance ................................................................... 8
2. Trade .............................................................................................................................. 9
3. Commodities ................................................................................................................ 11
4. Investment ................................................................................................................... 11
5. Enterprise and supply chains ....................................................................................... 12
6. Technology capabilities ............................................................................................... 13
7. International migration ............................................................................................... 14
8. Green economy ............................................................................................................ 15
9. Women in development............................................................................................... 16
10. Inclusive growth ........................................................................................................ 17
Concluding remarks ......................................................................................................... 18
Acknowledgments ........................................................................................................... 20
Addressing key economic issues to advance sustainable development: Ideas for actions vii
Preface by the Secretary-General of UNCTAD
Since my arrival as Secretary-General in September 2005, I have been consistently and
persistently pursuing an agenda of revitalizing UNCTAD as an institution through
administrative and management reform, and as a force for the betterment of the
development prospects of developing countries through ahead-of-the-curve thinking
and action. For this purpose, I established the Panel of Eminent Persons to advise me,
in the personal capacity of its members, on how to enhance the development role and
impact of UNCTAD. The Panel came up with very valuable recommendations, most of
which were endorsed and put into action by member States, together with the
secretariat, as manifested in the outcome of UNCTAD XII. In the wake of the crisis I
have reconvened the Panel with new members to help us set a new vision on how to
pursue development-centered globalization in the post-crisis era. I am pleased to share
this new report of the Panel with member States.
The report offers a number of ideas for actions to address key economic issues to
advance sustainable development and the interests of developing countries in ten
critical development areas. It is my sincere hope that member States will carefully
consider these ideas, which are also being reviewed in the secretariat.
I would like to express my gratitude to the two co-Chairs and the members of the
Panel for the wisdom and dedication they brought to this task. Through their work,
they have made an invaluable contribution to the future of UNCTAD and to the
development cause more generally. My appreciation also extends to the senior aides
of the Eminent Persons and the secretariat staff who provided substantive
backstopping to their work.
Supachai Panitchpakdi
Secretary-General of UNCTAD
viii Report of the Panel of Eminent Persons
Letter of transmission from the two co-chairs of the Panel of Eminent Persons
Dear Dr. Supachai,
We hereby transmit to you the report of the Panel of Eminent Persons entitled
“Addressing key economic issues to advance sustainable development: Ideas for
actions”. The Panel has thus accomplished the goals set out by you.
Our report is succinct, forward-looking, and focuses on a few key ideas for
international initiatives as they fall within UNCTAD’s realm. We focus on aspects where
we believe there is value added to today’s myriad of development reflections. We do
not intend to be exhaustive and comprehensive on development issues. Our ideas are
for you to consider and it is up to you to share them with member States. Member
States may wish to take up these ideas, either through UNCTAD or for consideration by
the broader development community.
Our recommendations are meant to support the development role and impact of
UNCTAD, and to provide fresh thinking with a view towards increasing the relevance
and effectiveness of this valuable organization. Whereas our first report, entitled
“Enhancing the Development Role and Impact of UNCTAD”, focused on institutional
issues, in this second report we address the key challenges faced by developing
countries, and the development community at large, in the wake of the global
economic crisis and the new phase of globalization.
We are pleased to make our contribution to UNCTAD’s development endeavor.
Keeping in mind the broad orientation and mandate of UNCTAD, in particular the
outcomes of UNCTAD XIII, we continue the efforts of the first Panel and follow up on
its recommendations. We note with great satisfaction that a large part of the
recommendations of the report of the first Panel have been effectively implemented
under your leadership.
The Panel met formally twice and held informal exchanges in between the meetings.
Some Eminent Persons provided their respective written inputs at various stages.
Some panel members participated in UNCTAD XIII and its parallel events, and
benefitted from extensive informal exchanges with various development stakeholders.
The Panel also benefited from an exchange of views with Mr. Pascal Lamy, the
Director-General of the World Trade Organization, and H.E. Dr. M. A. Maruping,
President of the 58th Trade and Development Board and Ambassador of Lesotho to
the United Nations and the other International Organizations in Geneva, as well as
with H.E. Mr. L.M. Piantini, President of the 57th Trade and Development Board and
Addressing key economic issues to advance sustainable development: Ideas for actions ix
Ambassador of the Dominican Republic to the United Nations and the other
International Organizations in Geneva. All of these contributions are gratefully
acknowledged.
We wish to thank you, Dr. Supachai, on our behalf and on behalf of the other members
of the Panel of Eminent Persons, for having entrusted us with this important task. Your
insight on economic development issues and your strategic thinking about UNCTAD
have greatly benefited the work of the Panel.
We also wish to register our appreciation to all those who contributed to our work, in
particular our Senior Aides. Our gratitude also extends to the coordinator of the Panel,
Mr. James Zhan, and to Mr. Jörg Weber, and their staff, for their substantive
backstopping and administrative support since the inception of the first Panel.
Tarja Halonen and Jagdish Bhagwati
Co-Chairs of the Panel of Eminent Persons
x Report of the Panel of Eminent Persons
Members of the UNCTAD Panel of Eminent Persons
Tarja Kaarina HALONEN was the 11th President of
Finland, the first female to hold the office. In
addition to her political career she had a long and
extensive career in trade unions and different non-
governmental organizations. Ms. Halonen is widely
known for her interest in human rights and
development issues. She is Co-Chair of the World
Commission on the Social Dimension of
Globalization, and served as Co-Chair of the United
Nations Millennium Summit. She is also a member
of the Council of Women World Leaders. In April
2010, she was appointed Co-chair of the High-Level
Panel on Global Sustainability by UN Secretary-
General Ban Ki-moon.
Jagdish BHAGWATI, University Professor at
Columbia University and Senior Fellow in
International Economics at the Council on Foreign
Relations, is a prominent economist. He has made
pioneering contributions to the study of
development, globalization, international trade,
foreign aid and immigration. He also writes
frequently for leading media worldwide. He has
served in many advisory roles, including at the
GATT as Economic Policy Adviser to Director
General Arthur Dunkel and at the UN to Secretary
General Kofi Annan on Globalization and on NEPAD
Process in Africa. He works with many NGOs,
including Human Rights Watch.
Addressing key economic issues to advance sustainable development: Ideas for actions xi
Margarita CEDEÑO DE FERNÁNDEZ is the Vice
President of the Dominican Republic. Prior to the
current position, as the First Lady, she coordinated
social policies for the administration. She was
Associate Member of the law firm of Doctor Abel
Rodríguez del Orbe and Fernández y Asociados.
She was Director of the Legal and Investment
Environment Management in the Office for the
Promotion of Foreign Investment. Since 2009, she
is Goodwill Ambassador of the Food and
Agricultural Organization.
Joaquim Alberto CHISSANO served as second
President of Mozambique for 19 years (from
1986 to 2005) where he is credited for
achieving broad socio-economic reforms. He is
widely regarded for his international leadership
and political achievements, serving as special
envoy of the UN on numerous occasions and
winning the first-ever Prize for Achievement in
African Leadership awarded by the Mo Ibrahim
Foundation. He is chairperson of the Joaquim
Chissano Foundation and the Forum of Former
African Heads of State.
xii Report of the Panel of Eminent Persons
Mohamed "Mo" IBRAHIM is the founder of Celtel,
an African mobile communications enterprise which
set up the world’s first borderless network across
East Africa. He is creator of the Mo Ibrahim
Foundation to encourage better governance in Africa,
as well as creating the Mo Ibrahim Index, to evaluate
nations' performance. He is a member of the Africa
Regional Advisory Board of London Business School.
In 2007 he initiated the Mo Ibrahim Prize for
Achievement in African Leadership.
Yongtu LONG is Secretary-General of the Center for
the Study of the G20. He is former Vice Minister of
Commerce and Chief Negotiator for China's
accession to the WTO. Between 2003 and 2010 he
was Secretary-General of the Bo'ao Forum for Asia.
Mr. Long was also in charge of the multilateral
economic and trade affairs between China and the
UN’s development agencies, and was actively
involved in creating the Regional Economic
Development Cooperation Committee of Tumen
River Area in Northeast Asia.
Addressing key economic issues to advance sustainable development: Ideas for actions xiii
Lord Mark MALLOCH-BROWN is a former United
Nations Deputy Secretary-General and served as
Chef de Cabinet to the then UN Secretary-General
Kofi Annan. He is also a former Minister of State in
the Foreign and Commonwealth Office of the British
government with responsibility for Africa, Asia and
the United Nations. He was also Administrator of the
United Nations Development Programme (UNDP)
during which time he spear-headed a number of
reforms, including following up the creation of the
United Nations Development Group (UNDG).
Thabo Mvuyelwa MBEKI is former President of the
Republic of South Africa. As successor to Nelson
Mandela, he is credited with leading South Africa’s
economy to robust growth in the post-Apartheid
era. He also created the New Partnership for
Africa’s Development (NEPAD) and oversaw the
successful building of economic bridges between
South Africa and Brazil, Russia, India and China,
with the eventual formation of the India-Brazil-
South Africa (IBSA) Dialogue Forum. He is also
founder of the Thabo Mbeki Foundation. In April
2010, he was appointed Co-chair of the High-Level
Panel on Global Sustainability by UN Secretary-
General Ban Ki-moon.
xiv Report of the Panel of Eminent Persons
Benjamin MKAPA is former President of the
United Republic of Tanzania and former
Chairperson of the Southern African Development
Community. He is Co-Chair of the Investment
Climate Facility for Africa and was a Panelist in the
High Level Panel on UN System-wide Coherence on
Development, Environment and Humanitarian
Assistance. He serves as a Commissioner for the
UN High Level Commission on the Legal
Empowerment of the Poor and is Chairman of the
South Centre.
Mari Elka PANGESTU is Minister of Tourism and
Creative Economy, and former Minister of Trade of
Indonesia. She was active in various trade forums
such as The Pacific Economic Cooperation Council
and has been one of the foremost economics
experts in Indonesia. She serves on the Board of
External Editors of the Asian Journal of Business
(University of Michigan) and Bulletin of Indonesian
Economic Studies (Australian National University).
She is also the co-coordinator of the Task Force on
Poverty and Development for the United Nations
Millennium Project.
Addressing key economic issues to advance sustainable development: Ideas for actions xv
Summary of recommendations
A. Taking stock of the implementation of the recommendations of the first report of
the Eminent Persons’ Panel, we recommend:
1. Organizing staff/delegate seminars to upgrade the substantive skills of delegates on
the one hand and to sensitize staff members to member States’ concerns on the other.
2. Holding joint brainstorming sessions before taking decisions in the
intergovernmental machinery to enable Geneva delegates to focus on substance and
development reality and ensure informed decision-making on the part of delegations.
3. Signalling strong interest on the part of the membership in the outcome and
direction of UNCTAD's programme of work through participation of Permanent
Representatives in critical meetings.
4. Considering integrating the Commission on Science and Technology for Development
into UNCTAD’s intergovernmental machinery to create synergies whilst fully preserving
its mandate and work programme, just as UNCTAD integrated the Commission on
Transnational Corporations and the Intergovernmental Working Group of Experts on
International Standards of Accounting and Reporting in 1996.1
B. Based on our central developmental values, we recommend
1. Undertaking to define “development-centered” globalization, setting out related
indicators and benchmarks, and periodically assessing the impact of globalization
against them.
C. Looking forward, we have identified a number of issue areas where new global
initiatives led by UNCTAD could be advocated to foster development-centred
globalization. Specifically, we recommend, in terms of:
1. Global economic and financial governance
Building a “Development Observatory of Global Economic and Financial Governance”
and a “Virtual Consortium of Think Tanks” on globalization and new development
strategies, to safeguard and advance developing countries' interests in the emerging
new global economic and financial governance structures.
1 The Commission could retain its link with ECOSOC if so desired.
xvi Report of the Panel of Eminent Persons
2. Trade
Establishing a multilateral and multi-stakeholder platform for fostering dialogue
among regional trade blocs to create synergies between different integration initiatives,
identify opportunities for “open regionalism”, emphasize the development angle and
ultimately support multilateralism.
3. Commodities
Creating an aid-for-diversification facility, which allows beneficiary countries to take a
holistic and forward looking approach, to bring commodities dependent low-income
countries on a sustained growth path of rising income and poverty reduction.
4. Investment
Creating a multilateral platform for coordination of international investment policies at
all levels to maximize the benefits of investment for sustainable development and
minimizing its potential negative effects.
5. Enterprise and supply chains
Developing operational strategies for strengthening the productive capacity of
developing countries’ enterprises in order to become part of global supply chains and
maximize the development benefits therefrom.
6. Technology capabilities
Offering an internationally recognized platform to retired professionals and skilled
emigrants for volunteering their services to disseminate "soft" technology.
7. International migration
Undertaking, in collaboration with other international organizations working in this
field, research and policy analysis on the economic development impact of migration,
particularly with respect to development finance, trade (Services mode 4) and the
economic empowerment of women to harness the benefits of international migration
and minimize its negative effects.
Addressing key economic issues to advance sustainable development: Ideas for actions xvii
8. Green economy
Developing a positive agenda at the firm level, and setting up an international technical
assistance centre for green investment and technology to help developing countries
build the capacity to grasp green economic opportunities and meet the increasingly
stringent environmental requirements that the new globalization will inevitably bring.
9. Women in development
Identifying and advocating meaningful and effective actions that could be deployed in
UNCTAD’s core areas of work where a differentiated approach for women rather than
a gender-neutral approach is warranted, to help mainstream gender issues into
economic and sustainable development-related policy-making.
10. Inclusive growth
Undertaking the research needed to understand the challenges and opportunities faced
by the informal sector in order to facilitate its formalization, establishing the platform
for the international community to engage with these questions and providing
technical assistance to facilitate the formalization of the informal sector.
xviii Report of the Panel of Eminent Persons
Introduction
As the global economic and financial crisis persists in one form or another, it affects
increasingly the growth and development of developing countries – the innocent
bystanders. At the same time, new global economic governance structures are yet to
emerge, while at the national level countries are reviewing their development
strategies. This poses new challenges to the international development community,
including international organizations such as UNCTAD. It is in this light that the
Secretary-General has reconvened the UNCTAD Panel of Eminent Persons to
brainstorm on fresh ideas for possible future international initiatives in promoting
development-centred globalization in the post-crisis era.
The report is meant to be succinct and forward looking and to focus on a limited
number of key ideas for international initiatives for long-term solutions on how to deal
with economic development challenges and how to strategically position UNCTAD in
this context. The report is not exhaustive and comprehensive in identifying
development challenges and solutions, but pinpoints areas within UNCTAD's remit.
The report starts with a stock-taking of the accomplishments with regard to the
recommendations of the first Panel under Dr. Supachai’s leadership. It then provides a
brief overview of the paradigm shift towards development-centred globalization. This
is followed by ten issue areas identified by the Eminent Persons. For each of these,
some key and emerging challenges are highlighted, with one or two major
international policy initiatives that the international community could consider as a
solution for UNCTAD to carry out.
A. Taking stock and lessons learned
UNCTAD was constituted in 1964 as the legitimate and unique forum for defining and
pursuing the economic agenda of the developing countries, within the context of the
world economy. The acronym UNCTAD includes “trade” and “development”. The
narrower epithet “trade” reflected the historical fact that GATT was thought of at the
time as reflecting conventionally the interests of the developed countries (because
GATT dealt with negotiations over trade concessions which involved only the
developed countries whereas the developing countries were generally exempted at
the time from making concessions to get concessions). The broader epithet
“development”, on the other hand, reflected the fact that the entire spectrum of
developmental issues could be within the scope of the new institution.
2 Report of the Panel of Eminent Persons
Thus, as the institution developed, the developmental focal point of UNCTAD led to its
mandate evolving towards the integrated treatment of development issues with
respect to trade, investment, commodities, technology, finance, enterprise and related
issues. UNCTAD cast its policy interests wide and even pioneered the analysis of issues
such as cross-border migration at a time when the subject was confined to a few
scholarly investigations and was not considered one of the overarching issues in
developmental analysis.
Evidently therefore, in light of this mandate and the accompanying ambition, and the
parallel evolution of developmental thinking and issues, Dr. Supachai, the newly-
nominated Secretary-General of UNCTAD – who had been the Director General of the
WTO and successfully appointed an International Panel of Experts on The Future of the
WTO –, proceeded to appoint in 2005 a Panel of Eminent Persons to similarly examine
the role and future of UNCTAD.
This Panel submitted its Report in June 2006, focusing on the institutional issues and
the leadership that UNCTAD could provide in guiding the resolution and progress on
major developmental issues. The present second Panel, which is a continuation of the
first Panel, has been reconvened by Dr. Supachai to examine some key and emerging
development issues and challenges in light of the global economic and financial crisis
and its ramifications, and with offering concrete ideas and suggestions concerning
their solutions, especially in regard to the interests of the developing countries. This is
what our Panel attempts below. Before doing so, it is opportune to look at the
achievements of the first Panel.
The report of the first Panel of Eminent Persons entitled "Enhancing the Development
Role and Impact of UNCTAD" became part of the UNCTAD XII Conference in 2008 in
Accra, Ghana, as sub-theme 4, and member States collectively agreed on the way
forward. Much progress has been made since then:2
• The functioning of UNCTAD's intergovernmental machinery was improved by
streamlining the Commissions' work programmes, and establishing the multi-
year expert meetings, so that the intergovernmental machinery could become
more substantive and produce more relevant outcomes, such as policy toolkits,
for the membership (Recommendations 14 and 15).
2 See Report of the Panel of Eminent Persons: Enhancing the Development Role and Impact of UNCTAD (UNCTAD/OSG/2006/1). It should be recollected in this context that member States decided in the pre-UNCTAD XII Trade and Development Board deliberations to not pursue recommendations Nos.2, 3, 8, 11, 17 and 20 of the Eminent Persons' Report.
Addressing key economic issues to advance sustainable development: Ideas for actions 3
• The Secretariat underlined its ahead-of-the-curve analytical capacity in
identifying and analyzing key emerging issues. For example, the organization
provided leadership in its analysis of the financial crisis and advocated financial
systems reforms (Recommendation 1).
• The Secretariat strategically positioned itself based on the three criteria of
comparative advantage, differentiation and complementarity, and strategic and
catalytic intervention. For example, it created the World Investment Forum
which after three sessions is now recognized as the global platform for high-
level, universal and inclusive deliberation and policy setting for investment for
development. In a similar vein, the three sessions of the Global Commodities
Forum have established it as a multi-stakeholder meeting to discuss and find
better solutions to perennial problems of the commodity economy
(Recommendation 4).
• Genuine partnerships with other international organizations were established
(with the ILO and UNIDO on various research areas; with FAO, the World Bank
and IFAD on the pursuit of the Principles for Responsible Agricultural
Investment; and with the WTO and OECD on G20 policy monitoring)
(Recommendation 5), and the organization took the lead in creating the UN
Inter-Agency Cluster on Trade and Productive Capacity as a means to increase
its direct development impact on the ground (Recommendation 18).
• Cooperation and interaction with civil society was intensified through the newly
established Public Symposium (Recommendation 6).
• "Flagship" research and analysis were strengthened (e.g. with the integration of
the Africa and LDC work) and the number of publications was significantly
reduced, placing emphasis on the Trade and Development Report and the
World Investment Report (Recommendation 9).
• With its Investment Policy Framework for Sustainable Development, its
Entrepreneurship Policy Framework and its Science, Technology and Innovation
Indicators for Policymaking in Developing Countries, among others, the
organization created outcomes of the deliberations of member States in the
respective multi-year expert meetings that provide relevant and pragmatic
development solutions (Recommendation 13).
• The Secretary-General's trust fund for developing country experts' participation
in UNCTAD's intergovernmental meetings has been operational and successful
since Accra (Recommendation 12).
4 Report of the Panel of Eminent Persons
• Deliberations of the high-level segment of the Trade and Development Board
have been enriched by the participation of a wide range of civil society and
academic representatives (Recommendation 16).
• Technical assistance work was streamlined from 400+ projects into now less
than 200 ongoing projects integrated into 17 clusters (Recommendation 19).
• The synergies and cross-pollination among the three pillars of work and within
the secretariat were strengthened through the Secretary-General's "3C" policy
of increased communication, coordination and concentration, and the setting
up of the post-Accra and post-Doha Steering Committees and task forces
(Recommendation 21).
• In the same vein, work on technology, South-South cooperation, commodities
and gender was strengthened through a realignment of secretariat functions
(Recommendation 21).
These achievements, attributable in no small measure to Dr. Supachai’s leadership and
strategic management, will leave a lasting legacy, reinvigorating UNCTAD as a United
Nations development organization.
At the same time, we note that efforts to strengthen UNCTAD in order to adapt to the
challenges of today and further enhance the organization's development role and
impact need to continue. This includes effectiveness and efficiency, focussing on
results and development impact and building on the organization's comparative
advantages.
Most important in this regard is that the implementation of the tenth
recommendation of the first Eminent Persons' Panel lags behind, namely that member
States should overcome confrontational attitudes, build trust and create a comfort
zone to nurture a spirit of development partnership and "shared success". In fact,
during the process of UNCTAD XIII sometimes confrontational attitudes prevailed
despite the good will of member States.
We believe that this can be overcome with a renewed look at the functioning of
UNCTAD's intergovernmental machinery. UNCTAD XII streamlined the structure and
work programme of the intergovernmental machinery. However, there is still room to
improve its effectiveness and impact. There is hence a need to help member States
make better use of the machinery, thus fostering a positive partnership approach. This
we see as a top priority.
Addressing key economic issues to advance sustainable development: Ideas for actions 5
Improving the functioning of UNCTAD's intergovernmental machinery is not achievable
in a one-off decision by member States but will require proactive engagement from all,
particularly from the highest level of delegations, and it will take time. Only with the
development of a "shared vision" of success among member States and the secretariat
can the organization continue to live up to its mandate, make an impact and be
relevant on the ground. We continue to believe that UNCTAD can fulfil this task.
As a start, we suggest organizing staff/delegate seminars to upgrade the substantive
skills of delegates on the one hand and to sensitize staff members to member States’
concerns on the other; and to hold joint brainstorming sessions before taking decisions
in the intergovernmental machinery, so as to enable Geneva delegates to focus on
substance and the development reality and ensure informed decision-making on the
part of delegations.
The participation of Permanent Representatives in critical meetings would be most
effective in signalling strong interest on the part of the membership in the outcome and
direction of UNCTAD's programme of work.
UNCTAD could also consider integrating the Commission on Science and Technology for
Development into its intergovernmental machinery to create synergies whilst fully
preserving its mandate and work programme, just as UNCTAD integrated the
Commission on Transnational Corporations and the Intergovernmental Working Group
of Experts on International Standards of Accounting and Reporting in 1996.3
B. Looking ahead: Core values of development-centred globalization
In reflecting on development experiences over the past decades, we need to recognize
several new “facts on the ground”. In particular, we need to record some striking
achievements but also take into account new vulnerabilities.
The achievements are significant: following substantial economic reforms, countries
such as China and India have maintained economic growth since the 1990s, which has
finally had a material impact on poverty. Many studies show that growth has been
inclusive in these large economies: poverty has been dramatically reduced as growth
rates have picked up, lifting several hundred million people out of extreme poverty.
However, this growth could have been even more inclusive if reforms had been deeper
and extended more broadly to other areas of policy.
3 The Commission could retain its link with ECOSOC if so desired.
6 Report of the Panel of Eminent Persons
Among the vulnerabilities, we must reckon particularly with (i) economic growth that
depends largely on fossil fuels, at the expense of our climate system and the
environment generally; (ii) the continuing technological constraints faced by many
developing countries; and (iii) rapid urbanization that has created its own set of
problems such as the expansion of slums and favelas, where deprivation can be acute.
At the same time, new issues have emerged. Notable are the massive movement –
legal and illegal – of people across borders, which has raised a new set of economic
and social challenges. There is also an increased awareness of women’s rights and
responsibilities and the role of women in development has become a central concern.
Corporate Social Responsibility, and indeed Personal Social Responsibility which must
complement it, have come to the fore in discussions about development.
Developmental issues require attention at multiple governance levels: local/national,
bilateral/regional/plurilateral and multilateral/global. While multilateral efforts are
generally important for development and present a more effective approach to
manage globalization, regionalism – including the work of groups such as the G20 –
can offer important benefits, provided it is not at the expense of multilateralism.
National action is important because nation States need to implement agreements and
solutions wrought at the international level. The problems we face are complex.
Similarly, the solutions for these problems need to be multi-layered and interlinked.
Moreover, the diversity of developing countries' interests needs to be acknowledged
as they contemplate policies to address the questions at hand. While all developing
countries' needs merit attention, the developmental problems they face vary.
Therefore, there is no one-size-fits-all solution. However, there are also many issues –
such as climate change; resource constraints; growing income disparities and youth
unemployment – which require a cross-cutting and holistic perspective. The welfare
concerns of LDCs and structurally weak and vulnerable economies command particular
attention because their needs are among the greatest. At the same time, we cannot
lose sight of the fact that also in emerging economies large portions of their
populations still live in extreme poverty. These poor people's needs cannot be
neglected.
Globalization is most usefully defined as the multiple points at which economies
engage with one another in the world economy. These exchanges are varied, of course,
occurring at the levels of trade, investment, commodities and technology exchange. It
is our duty to ask how these economic activities affect development, particularly in the
developing world. More pointedly, how can we strive to guide and harness these
activities to achieve developmental outcomes.
Addressing key economic issues to advance sustainable development: Ideas for actions 7
In appraising the issue, we do not start with a clean slate. Four perspectives have
informed the globalization debate: the Benign Impact viewpoint for one regards
globalization as mutually advantageous for all countries; the Benign Intent point of
view believes globalization processes are also benign in intent; on the other hand the
Malign Impact stance argues that “international integration leads to national
disintegration” and that weaker, peripheral developing nations will be harmed by
commingling with developed countries; while the Malign Intent point of view sees
foreign aid and investment as a form of “neo-colonial embrace”.
These different perspectives are useful to keep in mind, when we consider how
globalization can facilitate, rather than handicap, development. Today there is greater
acknowledgment of the interconnectedness of developing and developed countries,
therefore there is also more general consensus that partnership, rather than
partisanship, can deliver the developmental solutions we seek. In this vein, our Report
strikes a constructive chord: globalization is an irreversible process. Therefore
development-oriented actions, both private and public, need to be tailored within the
framework of a globalized world to be effective.
Since the onset of the current global economic and financial crisis, there has been an
abundance of suggestions on a meaningful course for reforms to the world economic
system, especially inasmuch as the welfare of developing countries is concerned.
We believe the expertise, experience and geographically diverse composition of our
Eminent Persons Panel places it uniquely to make a distinct contribution, particularly
on the more permanent and key developmental values that now dominate our
discourse. The following issues must be central:
• Sustainability of development – to ensure that we do not only content
ourselves with short-term solutions but make provision for the needs of future
generations when we address global concerns.
• Inclusiveness of development – to ensure that the gains from development
reach the poor and greater equity is achieved. 4
4 We refer to the triple bottom line definition of sustainable development as used in the United Nations 2005 World Summit Outcome Document, as follows: “[…] the three components of sustainable development — economic development, social development and environmental protection — as interdependent and mutually reinforcing pillars. Poverty eradication, changing unsustainable patterns of production and consumption and protecting and managing the natural resource base of economic and social development are overarching objectives of and essential requirements for sustainable development” (paragraph 48).
8 Report of the Panel of Eminent Persons
• Good governance at the national and international levels. At the national level,
responsible and democratic governance is key for long-term development. The
same holds true for democratic governance in international institutions. The
effective participation of developing countries in institutions overseeing the
world economy is necessary to ensure their interests in sustainable
development and inclusive growth are meaningfully represented.
The sustainability and inclusiveness of development, rooted in good governance both
at the national and international levels are therefore the central tenets that underpin
our developmental values.
It remains an important task for UNCTAD to define “development-centred”
globalization, based on the above core values, and to establish relevant indicators and
benchmarks, to periodically assess the impact of globalization against these values.
C. Issue areas: Ideas for actions
The Eminent Persons have identified in their discussions a series of issue areas where
new global initiatives, possibly led by UNCTAD, could be advocated to foster
development-friendly outcomes from globalization.
1. Global economic and financial governance
To safeguard and advance developing countries' interests in emerging new global
economic and financial governance structures, we should build a “Development
Observatory of Global Economic and Financial Governance” and develop a “Virtual
Consortium of Think Tanks” on globalization and new development strategies.
In the wake of the global economic and financial crisis, a number of processes are
under way to reform the global economic and financial systems.
The challenge for these interwoven processes is to ensure (i) good governance in
financial institutions, (ii) improved policy coherence at national and international levels
and better coordination between interrelated sectoral issues, (iii) effective deployment
of measures to achieve sustainable development outcomes, and (iv) inclusiveness – for
the benefit of the most vulnerable in the global economy. A priority is to advance the
key interests of developing countries. We need to ensure that they can cope in the
Addressing key economic issues to advance sustainable development: Ideas for actions 9
emerging new global economic system and effectively participate in new global
economic policymaking.
The establishment of a “Development Observatory of Global Economic and Financial
Governance” can help facilitate the above goals. Such an observatory would undertake
“development audits” of all major suggested changes to the global financial and
economic architecture, assess their impact on sustainable development and inclusive
growth, and make recommendations to address any shortcomings. The Observatory
would be an effective assessment tool independent from policy setting processes.
UNCTAD could be a worthy custodian of the Observatory. In fulfilling this role under its
development mission and mandate, UNCTAD could also strive to increase its
cooperation with the World Bank and the IMF, especially in relation to policies that
affect developing countries.
UNCTAD could also establish a virtual consortium of think tanks on globalization and
development strategies. Special efforts would need to be made to ensure the effective
involvement of developing country think tanks. These could monitor the evolution of
globalization, assess its development impact and make recommendations to national
governments on emerging economic issues and challenges. Such a “Consortium” can
tap into UNCTAD’s cutting edge research on economic issues. Building on these
synergies the "Consortium" could offer research on specific topics and assist with
capacity-building to national governments and institutions on development strategies
in relation to trade, investment, technology and enterprises, among others. This builds
on the idea of the global network of think tanks that emanated from the
recommendations of the first Eminent Persons' report, and on the organization's
Virtual Institute. The "Consortium" could provide an online platform for national,
regional and international experts to discuss, share experience and provide
recommendations on development strategies.
2. Trade
We need to establish a multilateral and multi-stakeholder platform for fostering
dialogue among regional trade blocs to create synergies between different integration
initiatives, identify opportunities for “open regionalism”, emphasize the development
angle and ultimately support multilateralism.
Developing countries, if not all members of the WTO, should be concerned about the
implications of the failure to complete the Doha Development Agenda (DDA). The
WTO stands on three pillars: trade liberalization, rule-making and the Dispute
Settlement Mechanism (DSM). These three pillars have ensured an open, balanced,
10 Report of the Panel of Eminent Persons
rules-based trading system, for the benefit of all members – big and small, developed
and developing.
The uncertainties of the completion of the DDA negotiations has affected the
multilateral trade liberalization agenda of the WTO and especially over the last decade,
precipitated the proliferation of preferential regional agreements. The multilateral
system could be undermined if regional or bilateral agreements led to inconsistencies
with the other two pillars of the multilateral trading system: its rules and the DSM. We
should caution against rules in regional and bilateral agreements being dictated by the
more developed or economically powerful partner, resulting in agreements that
accommodate the interests of dominant parties at the expense of the weak. We
should endeavor to keep the WTO DSM intact by refraining from using regional or
bilateral agreements to resolve trade disputes. Regional dispute settlement bypasses
the input of WTO members outside of regional agreements, potentially to the
detriment of developing countries.
The increased internationalization of production underlines the importance of having
common rules of origin. Bilateral rules fragment the world economy, creating what is
now known as the "spaghetti bowl" problem. The multiplicity of effective tariffs which
is the result of a proliferation of PTAs also harms developing countries and their
enterprises in particular, as they do not always have the resources to cope with this
complexity.
Another threat to developing country interests in the trading system is a trend since
1995 to pursue plurilaterals. This could see the interests of well-funded lobbies
becoming entrenched in new rules, rather than the interests of developing countries.
UNCTAD, through its long record of work on the development dimension of trade, is
uniquely placed to provide a platform for dialogue on these issues. The developments
mapped out above have implications for developing countries. It is important that they
are vigilant and understand how different outcomes could affect their interests.
The issues are best dealt with through dialogue, which could be organized to take
place on a regular basis among different regional trading blocs. Organized as a part of
the annual meetings of the Trade and Development Board or, alternatively, as a
standing item on the agenda of the Trade and Development Commission, leading up to
UNCTAD XIV, such a dialogue can serve to improve the connection and linkages
between different blocs or regional economic communities, for example by exchanging
experiences and sharing best practices. Such dialogue should be inclusive, involving all
trade-development stakeholders. Bringing together representatives of all regional
blocs can help to dilute conflict and rather create synergies between different
Addressing key economic issues to advance sustainable development: Ideas for actions 11
integration initiatives, identify opportunities for “open regionalism”, emphasize the
development angle in all of this and ultimately support multilateralism.
3. Commodities
To bring commodities dependent low-income countries on a sustained growth path of
rising income and poverty reduction, we must foster their diversification. This could be
achieved by creating an aid-for-diversification facility that allows beneficiary countries
to take a holistic and forward-looking approach.
Commodities remain the key export products for a large number of developing
countries and have a direct impact on employment, poverty, food and energy security,
and sustainable development. Price volatility, food price spikes, the financialization of
commodities markets, and a lack of transparency and accountability at many levels in
commodities sectors pose risks to the long-term sustainable development prospects of
low-income, commodity-dependent developing countries and poor consumers alike.
Creating an “Aid-for-Diversification Programme” can offer the type of holistic and
forward looking support that commodity-dependent, low-income countries need to
successfully diversify their economies, both horizontally and vertically. Such a facility
would not only provide funding, but also help through technology and human resource
development, including providing advice on the utilization of funds and job creation.
More specifically, such a facilitate could help countries engage in global value chains,
and ultimately advance further up the value chain, by, inter alia promoting
entrepreneurship, strengthening companies’ absorptive capacity, building
infrastructure and generally developing supply-side capacity. A holistic approach,
which covers the entire commodity supply chain and all actors involved, and facilitated
by the sharing of country experiences, can assist countries to deal with the long-
standing challenges of commodity dependence. An Aid-for-Diversification Programme
would fit well with the mandate of UNCTAD and could, moreover benefit from
synergies with its other areas of expertise in trade, investment and technology.
4. Investment
To maximize the benefits of investment for sustainable development and minimize its
potential negative effects, we need to work towards creating a multilateral platform
where international investment policies can be coordinated.
12 Report of the Panel of Eminent Persons
With the new phase of globalization the global investment landscape is changing. New
sources and new forms of international investment are yet to be tapped into for long-
term growth and job creation. At the same time, the international investment regime
is marked by its complexity, comprising over 3,300 treaties,5 characterized by gaps,
overlaps and inconsistencies, and, above all, a lack of the sustainable development
dimension. In this context international investment policy makers are faced with the
dual challenge to rationalize this complex system while finding policy options to factor
in sustainable development objectives into investment policies.
UNCTAD’s Investment Policy Framework for Sustainable Development provides the
basis for addressing many of the problems in the current system. It provides a toolkit
with policy options for countries to tap into and formulate treaties that avoid the most
common pitfalls, sidestep the glaring failures of the current regime and work better to
facilitate sustainable development.
However, more needs to be done. No formal institutional body – akin to the WTO and
the IMF, which respectively manage global trade and finance – is mandated to oversee
international investment issues. This absence is partly to blame for the systemic
complexity and incoherence of the current regime. A more coordinated approach to
global investment relations is needed if we are to (i) stimulate investment for growth
and jobs; (ii) make investment work for sustainable development; (iii) avoid
protectionism; and (iv) ensure policy coherence at the national and international levels
and create synergies between investment policies and other policies such as those for
trade, finance, competition or the environment (e.g. climate change).
UNCTAD, already the lead agency in this field, can play a key role to strengthen
international dialogue among all relevant actors (including the OECD, WTO and IMF);
foster greater trust between countries on the contentious issue of foreign investment;
and provide the multilateral platform for coordinating investment policy-making at
national and international levels. Such a coordinated approach, facilitated by a central
institution, would contribute significantly to ensure that any process which may lead to
the establishment of an international investment system is inclusive and transparent.
5. Enterprise and supply chains
To reap the benefits of globalization, developing countries must build local enterprise
and develop their domestic productive capacity to integrate into global supply chains.
UNCTAD could help governments develop operational strategies for strengthening the
5 This includes bilateral investment treaties, regional agreements and free trade agreements with investment chapters.
Addressing key economic issues to advance sustainable development: Ideas for actions 13
productive capacity of their enterprises in order to become part of global supply chains
and maximize the development benefits thereof.
Local enterprise development and linkages between local firms and affiliates of
multinational firms are essential transmission mechanisms for the development
benefits of foreign investment. This includes technology dissemination, skills transfers,
indirect and induced value-added and job creation. UNCTAD’s Entrepreneurship Policy
Framework was established to facilitate the creation of local firms in developing
countries, while its EMPRETEC programme has successfully trained tens of thousands
of entrepreneurs.
However, a more encompassing approach is necessary, that draws entrepreneurship
development into the framework of overall investment and enterprise development
policies. This approach will enable the healthy development of indigenous productive
capacity in poor countries. These policies should also strive to help firms integrate into
and/or upgrade along global supply chains; and create synergies between domestic
public and private investment and foreign investment for the development of
sustainable productive capacity.
UNCTAD could expand its Entrepreneurship Policy Framework and the experience with
its EMPRECTEC training programmes to help governments develop conceptual and
operational strategies to strengthen enterprise capacity in order to become part of
global supply chains and maximize the development benefits thereof. This should be
done in close cooperation with UNIDO.
6. Technology capabilities
The technology gap continues to thwart the development prospects of developing
countries, and the governance of technology dissemination remains a contentious and
unresolved issue. To help LDCs, one viable approach is to disseminate "soft" technology,
making use of the skills and knowledge of retired professionals and skilled emigrants,
offering them an internationally recognized platform for volunteering their services.
Developing countries require a wide range of technologies to build productive capacity
and spur economic growth. In this regard the dissemination of technology, and
recipient countries' ability to acquire, adapt, master and improve existing technologies
constitute the biggest challenges. Efforts to address these challenges so far include: (i)
helping to create a conducive environment for technology flows from parent
companies of multinational firms (developers and owners of advanced technology) to
affiliates or domestic firms in host countries, and establishing appropriate frameworks
14 Report of the Panel of Eminent Persons
for intellectual property rights protection; (ii) encouraging linkages between
multinational firms and domestic firms (to maximize technology diffusion) and the
development of absorptive and adaptive capacities of domestic firms, including
through the establishment of science and industrial clusters; (iii) helping developing
countries set up or improve national innovation capacities, in collaboration with
universities and research institutes, the private sector and other stakeholders; and (iv)
learning from the experience of how TRIPS Article 66 has been operationalized to
establish partnerships with the private sector to facilitate the adaptation, generation
and dissemination of technologies in LDCs. Despite all these efforts, the technology
gap continues to thwart development efforts and economic growth prospects in many
developing countries, in particular in LDCs.
An endeavor that could supplement the above efforts is to focus on the dissemination
of soft technology (i.e. know-how and skills transfer) through a "Grey Tech Corps" that
also includes engaging the skilled diaspora. This could also have a strong South-South
cooperation dimension. Such a Corps would consist of retired professionals from
developed countries and skilled emigrants from developing countries that would
volunteer to provide vocational training, advisory work and pragmatic technology
solutions in LDCs on a short-term basis in exchange for international recognition (and
free accommodation and travel). UNCTAD could play a key role in this endeavor,
working to (i) mobilize the sources; (ii) identify the needs; (iii) do matchmaking; (iv)
organize an exchange of experiences; and (v) provide additional incentives in the form
of an internationally recognized letter of appreciation. This could also include
bestowing the title of "UN ambassador for technology for development" on
participating professionals at a high-profile ceremony organized during the Trade and
Development Board.
7. International migration
To harness the benefits of international migration and minimize its negative effects,
UNCTAD should, in collaboration with other international organizations working in this
field, undertake research and policy analysis on the economic development impact of
migration, particularly with respect to development finance, trade (Services mode 4)
and the economic empowerment of women.
Cross-border migration creates developmental challenges and opportunities for
developing and developed countries alike. For developing countries, the emigration of
skilled workers to developed countries undermines development efforts and drains
scarce resources. At the same time remittances (from both legal and illegal migrants,
and especially from women) have increased dramatically. Remittances dwarf not only
Addressing key economic issues to advance sustainable development: Ideas for actions 15
aid flows but also outstrip social spending in many countries. These transfers have
therefore come to be regarded as a more effective “trickle-up” source of funding for
development, often with a strong gender dimension. Developed countries' interests
could be described as diagonally opposed to those of developing countries, as they
seek to attract skilled immigrants (amplifying the “brain drain” fears of developing
countries) while at the same time the crack-down on illegal immigration, affecting
mostly the uneducated, unskilled and poor, has been stepped up.
The issue of international migration therefore represents a significant development
challenge, but also opportunities. UNCTAD can help the development community to
address these issues by engaging with global migration institutions and organizations6
to assess the economic development impact of migration and related policies,
particularly with respect to development finance, trade, leveraging remittances, the
economic empowerment of women, and provide appropriate policy recommendations.
8. Green economy
UNCTAD should help developing countries build the capacity to benefit from green
economic opportunities and meet the increasingly stringent environmental
requirements that the new globalization will inevitably bring. Its actions can involve
advocacy and knowledge dissemination at firm level, and setting up an international
technical assistance centre for green investment and technology to drive change at the
national and international governance level.
The multilateral negotiations on climate change are essentially not progressing as a
result of the clashing interests of developed and developing countries; concerns
related to green protectionism through policy measures and CSR standards; and a lack
of willingness to commit funds to facilitate the green transition in poor countries.
Although negotiations take place at the country level, a large part of the solution must
be found at the firm level. It is firms that need to transition to lower-impact production
processes. Firms will have to adopt the CSR standards and environmental
requirements of procurers and, ultimately, firms will provide most of the funding for
green investments and develop green technology. It is high time to instill a positive
agenda at the firm level.
In the new phase of globalization consumer preferences and demands in rich countries
will determine the production requirements in poorer ones through private standards,
set independently from intergovernmental negotiations. UNCTAD should develop
concrete options to help developing country firms meet increasingly stringent
6 Such as the Global Forum on Migration and Development or the Global Migration Group.
16 Report of the Panel of Eminent Persons
environmental requirements for production processes. At the same time, UNCTAD
could also provide a forum for non-negotiating multi-party deliberations to facilitate
greater coherence between trade and climate policy.
UNCTAD should also develop a structured approach to help the poorest countries
formulate strategies for green investment promotion and green technology
development, and on this basis design a package of technical assistance to developing
countries focusing on policies and initiatives to promote green investment and create
green jobs, including through public-private partnerships. Besides fostering foreign
investment, one of the main carriers of green technology, the dissemination of clean
technology can be enabled for example by setting up an international technical
assistance centre for green investment and technology. Together with UNEP and the
UNFCCC, UNCTAD can play a lead role in the conceptualization and realization of such
centre.
9. Women in development
Gender equity has emerged over the past decade as a key priority for the development
community, with the overarching objective to mainstream gender parity in the
economic and sustainable development spheres. However, the practical implications of
such a move are not clear, and often efforts have fallen short. UNCTAD should identify
(and advocate) meaningful and effective actions that could be deployed in its core
areas of work where a differentiated approach for women rather than a gender-neutral
approach is warranted.
Women’s empowerment and gender equality are crucial for fostering sustainable
development. However, numerous challenges obstruct efforts to unlock the power of
women in the economic development sphere. For example, compared to men,
disproportionate numbers of women (i) live in poverty and are marginalized; (ii) work
in the informal sector where jobs are not recognised, regulated or protected by
legislation; (iii) are confronted by barriers that limit their access to markets, resources
or decision-making structures; and (iv) are deprived of education, training or other
capacity-building opportunities.
UNCTAD needs to strengthen the emphasis on gender parity within its organization
and work, ensuring that all divisions contribute effectively to this endeavour with
coordinated efforts and results. Specifically, it needs to identify practical and effective
actions that can be undertaken in the core areas of its work (i.e. trade, investment,
technology, and enterprise development), and where better results would be obtained
through affirmative action rather than a gender-neutral approach. These actions
Addressing key economic issues to advance sustainable development: Ideas for actions 17
should be rolled out at all levels of governance: local, regional and international, and
should encompass the entire economic development spectrum, including promoting
women’s entrepreneurship, fostering women’s engagement in international trade, and
promoting women's participation in leadership positions in all areas of economic and
development activity.
The mainstreaming of women's participation in economic and development should be
underpinned by (i) empirical information on women’s actual and potential role in the
economy; projections on the impact of different trade/investment-related policies on
gender equality; (ii) targeted support services (such as services to facilitate linkages
between women entrepreneurs and women leaders, and networking and advisory
services); and (iii) an illustrative series of best and/or bad practices to guide women
through the pitfalls and risks of operating in the economic and development area.
Given the paramount importance of unlocking the power of women for development,
we consider this work a priority area for UNCTAD's engagement, which should be
pursued without delay. Its progress in this area should be periodically reported to the
TDB.
10. Inclusive growth
Inclusive growth is not possible without embracing the informal sector of the economy.
UNCTAD should undertake the research needed to understand the challenges and
opportunities faced by the informal sector in order to facilitate its formalization.
UNCTAD could establish a platform for the international community to engage with
these questions and provide technical assistance to facilitate the formalization of the
informal sector.
Inclusive growth requires embracing the informal sector, which comprises a major part
of the economy in almost all developing countries, particularly in LDCs. Policies should
be developed to support and upgrade the informal sector, without damaging it
through prohibitively strict intervention. Enterprise development and women
empowerment should be priority areas in this endeavour.
Governments should work to bring informal sector employees within the ambit of their
economic and development policies. The informal sector can be strengthened and
upgraded by providing training, business facilitation services and information to
informal sector operators; and by extending hard and soft infrastructure (such as
shelters, drainage but also insurance protection, affordable credit and other financial
services) to them. These and other measures could prevent the exploitation of migrant
workers, provide informal sector operators with some form of guarantees, and
generally help reduce the risk, cost, and insecurity associated with informal sector
18 Report of the Panel of Eminent Persons
operations. There is also a strong need to focus on preventing harassment, corrupt
practices and outright sexual and gender-based violence to which women are more
vulnerable when working in informal activities. This could best be achieved through
education, training and awareness-raising, such as the spread of “decent work” as
recommended by the ILO.
Given the economic prominence of the informal sector in many developing countries,
UNCTAD has an obligation to deal with it. This holds particularly true for LDCs, already
a priority area of work for UNCTAD. The organization needs to conduct an in-depth
study about the informal economy, possibly in collaboration with the ILO and UNDP.
This study should also analyse the contribution of informal labour and operations to
global trade and value chains. UNCTAD should also provide a platform for the
international community to engage in a dialogue on how best to facilitate, support and
upgrade the informal sector to contribute to inclusive growth strategies. These issues
could be discussed in the annual sessions of the TDB under the interdependence
agenda item. UNCTAD should also provide technical assistance to facilitate efforts to
formalize the informal sector, including through its e-governance systems.
Concluding remarks
On the basis of our central developmental values, i.e., the sustainability and
inclusiveness of development grounded on good governance at national and
international levels, we have identified a number of issue areas where new global
initiatives led by UNCTAD could contribute to foster development-centred
globalization.
These suggestions are seeds that could be further developed and adapted, and then
adopted by UNCTAD. They should not be seen in isolation, but as part and parcel of the
broader UNCTAD mandate and programmes as set out by UNCTAD XIII.
They should also be seen in the broader context of the UN’s social and economic
endeavour. In this context, they can be regarded as forming part of the transition of
our global development efforts from the Millennium Development Goals (MDGs) to
the Sustainable Development Goals (SDGs), and their follow-up.
UNCTAD is well positioned to play a crucial role in this regard. In the process of
formulating the SDGs, it can contribute the economic aspects. It can also effectively
help implement the trade, investment, technology and related dimensions of the SDGs,
and translate sustainable development into policy actions in its respective core policy
frameworks, thereby ensuring that trade, investment, technology and related issues
Addressing key economic issues to advance sustainable development: Ideas for actions 19
effectively contribute to the achievement of the SDGs. UNCTAD can also regularly
review the effectiveness of development policies in this regard, particularly in the
context of the prevalence of an extensive informal sector in most developing countries.
For UNCTAD to play its role, and be an effective institution, fostering development
partnerships at the intergovernmental level remains key. This will require major efforts
by all involved. We need to identify ways to build and maintain constructive
partnerships and minimize confrontational attitudes.
As the organization approaches its 50th anniversary, it is important not only to look
back and draw lessons, but also to plan for the future. We believe that the task ahead
for UNCTAD, as we have analysed it in this Report, is a challenging one. But it is not
beyond its grasp.
* * *
20 Report of the Panel of Eminent Persons
Acknowledgments
The Panel of Eminent Persons would like to express its great appreciation to the
following senior aides for their substantive contributions to its work:
H.E. Ms. Päivi Kairamo-Hella (Senior Adviser to H.E. Mrs. Halonen and Ambassador of
Finland to the United Nations in Geneva); H.E. Ambassador Dumisani S. Kumalo (Senior
Advisor to H.E. Mr. Mbeki); Mr. Jorma Korhonen (Director General in the Department
for External Economic Relations of the Ministry for Foreign Affairs of Finland); Mr.
Chen Wei (Senior Advisor to H.E. Mr. Long); Mr. Aziz Ponary Mlima (Special Advisors to
H.E. Mr. Mkapa); Mr. Frank Olivares (Executive Director of the Vice-Presidency of the
Dominican Republic); Mr. Kent Wilska (Commercial Counsellor in the Department for
External Economic Relations of the Ministry for Foreign Affairs of Finland); Ms. Camilla
de Caires (Assistant to Lord Malloch Brown); Ms. Sabrina Santana (Assistant to H. E. Ms.
Cedeño de Fernández); Ms. Rizki Siregar (Assistant to H.E. Ms. Pangestu); Mr. Nuno
Thomas (Assistant to H.E. Mr. Chissano); Ms. Heather White (Assistant to Mr. Mo
Ibrahim); and Ms. May L. Yang (Assistant to Prof. Bhagwati).
The Panel would also like to thank Mr. James X. Zhan (Coordinator of the Panel of
Eminent Persons) and Mr. Jörg Weber of the UNCTAD secretariat and their teams for
their valuable substantive backstopping and administrative support to the work of the
Panel.
All of these contributions are gratefully acknowledged.
* * *
UNCTAD Today and Tomorrow
Reflections by Supachai Panitchpakdi,
Secretary-General of UNCTAD
on the Second Report of the
UNCTAD Panel of Eminent Persons
22 Report of the Panel of Eminent Persons
Table of contents
Introduction ........................................................................................................... 23
I. The global context .............................................................................................. 24
A. Uncertainty and structural weaknesses of the global economy ................................ 24
B. Persistent series of crises ............................................................................................ 25
C. Development paradigm ............................................................................................... 26
D. Set-back of multilateralism ......................................................................................... 26
II. The role of UNCTAD ............................................................................................ 27
A. Substantive achievements .......................................................................................... 27
B. Institutional achievements .......................................................................................... 32
III. My expectations for UNTAD’s future .................................................................. 34
A. Comments on the recommendations of the Eminent Persons’ Panel ........................ 34
B. My personal expectations and visions for the future of UNCTAD .............................. 39
C. Development passion .................................................................................................. 41
Introduction
Since my arrival as Secretary-General in September 2005, I have consistently and
persistently been pursuing an agenda of enhancing UNCTAD as an institution for the
betterment of the development prospects of developing countries through ahead-of-
the-curve thinking and action. For this purpose, I established the Panel of Eminent
Persons to advise me, in their personal capacity, on how to enhance the development
role and impact of UNCTAD. The Panel came up with very valuable recommendations,
most of which were endorsed and put into action by member States, together with the
secretariat, as manifested in the outcome of UNCTAD XII.
I reconvened the Panel of Eminent Persons in light of a number of developments that
are under way in the wake of the financial crisis, with the aim of promoting a new
governance structure for the global economic and financial system. The challenge for
these interwoven processes is to ensure overall coherence of approach and outcomes,
as well as fairness and equity for all stakeholders in the global economy, especially the
most vulnerable. In order to pursue development-led globalization, a further challenge
is finding a way to secure poor countries’ effective representation and inclusion in the
decision-making leading to new international governance institutions. Their
participation is essential to mainstream development dimensions which might
otherwise be neglected.
In light of these considerations, I asked the Panel to advise me, as Secretary General of
UNCTAD, on how to meet the key and emerging economic development challenges of
today, and provide concrete ideas for international initiatives on how to deal with
them, and how to strategically position UNCTAD in this context.
The Panel met twice and held several informal exchanges in between these
meetings. The Eminent Persons provided their respective written inputs to the report
at various stages. The Panel also had exchanges with Mr. Pascal Lamy, the Director-
General of the World Trade Organization, H.E. Dr. M. A. Maruping, President of the
58th Trade and Development Board and Ambassador of Lesotho to the United Nations
and the other International Organizations in Geneva, and H.E. Mr. L.M. Piantini,
President of the 57th Trade and Development Board and Ambassador of the
Dominican Republic to the United Nations and the other International Organizations in
Geneva. Some panel members participated in UNCTAD XIII and its parallel events, and
had informal exchanges with various development stakeholders. I am grateful to all
who contributed to these exchanges and the work of the Panel.
24 Report of the Panel of Eminent Persons
The report covers broad areas of economic development, but given time and space
constraints cannot deal with every aspect exhaustively. Instead, the approach chosen
by the Eminent Persons was to identify one or two major challenges for each key and
emerging issue area that falls within UNCTAD’s competence and formulate one or two
possible solutions for UNCTAD members States to reflect upon.
The following contains my personal reflections on this second report of the Panel of
Eminent Persons.
I. The global context
At the outset, allow me to put the work of the Eminent Persons and their
recommendations, as well as the work of UNCTAD, into the context of four overriding
issues that set the stage for today's development endeavor.
A. Uncertainty and structural weaknesses of the global economy
The global economic crisis has laid bare significant underlying structural weaknesses in
many countries, and the global economy as a whole. While developed countries have
not yet recovered fully from the financial crisis, and growth in developing countries is
losing steam, a more troubling picture emerges that does not bode well for economic
development in the long-term, particularly in developing countries. Together,
macroeconomic imbalances, fiscal crises, massive unfunded social liabilities (due to
aging populations) and weak financial markets in developed countries all contribute to
form a complex nexus of economic risk. This threatens to inhibit economic
diversification, restrain productivity growth, restrict gains from trade, and hamper
efforts to alleviate poverty.
Furthermore, these underlying structural weaknesses limit the policy options available
to respond to the challenge of rising populations and the accompanying increases in
water, food and energy consumption and climate change. Shortages of core resources
will create more conflict between social groups, nations and industries that need them.
Yet chronic fiscal deficits are threatening investments in infrastructure, crucial to
improving the availability of and access to these resources. The resulting shortages
threaten global prosperity, and ultimately peace and security.
Addressing key economic issues to advance sustainable development: Ideas for actions 25
B. Persistent series of crises
Every year of the new Millennium has been marked by a crisis, be it in the realm of
finance, the broader economy, energy, the environment, food, or climate. It is as if we
are living through a period of persistent crises and crisis management. Although some
of these crises appear to have been contained, their root causes have not been
addressed and no durable solution is in sight.
For example, the environmental crisis – in particular, climate change and the issue of
rising global temperatures and dwindling resources – poses fundamental and
recognized challenges to sustainable development. However, all recent multilateral
gatherings on the topic have failed to come up with workable solutions. Similarly, the
failure to make progress on reforming the international financial system – including
securing more reliable provision of international liquidity, restructuring sovereign debt,
setting up stronger financial market regulation and effecting more democratic
governance of international financial institutions – remains the single biggest obstacle
to establishing a more stable international environment that is supportive of
productive investment and entrepreneurship.
The same holds true for the food crisis. Governments and the international
community have yet to address its underlying cause and, although the means are by
now well-known – discouraging industrial biofuels expansion, regulating financial
speculation, containing irresponsible land investments, encouraging the use of buffer
stocks to moderate price swings, reducing fossil fuel dependence, promoting
ecologically sound agricultural practices, and reforming global trade rules – they are
yet to be enacted.
C. Development paradigm
The financial crisis has brought about an important reassessment of the prevailing
development discourse. Many previously held tenets of development economics,
including the wisdom of financial deregulation and liberalization, are now being
questioned and re-thought. Indeed, the development paradigm is at a crossroads.
There is consensus that the old paradigm is no longer valid but there is a lack of clarity
and consensus with regard to the new development paradigm. The world is moving
from an era of liberalization to an era of regulation, with industrial policy back in
fashion.
26 Report of the Panel of Eminent Persons
But how to frame development strategy and how to wisely use industrial policy at the
national and international level remain a challenge for all governments, particular
developing country ones. The global community needs to formulate a new sustainable
development and inclusive growth model based on the Sustainable Development
Goals (SDGs). Building global consensus to give traction to this endeavor remains a
daunting task. In this context, it is noteworthy that many of UNCTAD's policy positions
that were previously considered "unorthodox" have now made it into the mainstream,
and are reflected in countries' policies and strategies.
D. Set-back of multilateralism
Multilateralism has been dealt serious set-backs in major development issue areas,
including the Doha Development Round and climate change negotiations. However, as
UNCTAD has repeatedly pointed out, in today's interdependent world economy it is
not possible for countries to act alone – be it on economic, social and/or
environmental issues. At the same time, regionalism is on the rise. While regionalism
can play a positive role, it can also undermine global governance by amplifying
fragmentation. As stated earlier, our inability to find global solutions to global
problems will further undermine the notion of multilateralism at a time when it is in
greatest need.
Addressing key economic issues to advance sustainable development: Ideas for actions 27
II. The role of UNCTAD
It is against this backdrop that we need to review UNCTAD's achievements in dealing
with development challenges, and the lessons learned over the past eight years. Two
sub-sections below will look into, respectively, the organization's substantive and
institutional achievements.
A. Substantive achievements
UNCTAD has successfully shifted its role from providing an alternative view that is
limited to commenting on the "mainstream" towards getting directly involved in
shaping the new development paradigm. This manifested itself in the advocacy of the
following themes through our flagship publications and conferences.
a) Development-centered globalization: inclusive growth and sustainable
development
The Doha conference of UNCTAD XIII built a consensus on the need for more inclusive
growth and sustainable development. It also identified policies to achieve this goal,
and recognized the valuable contribution that UNCTAD could make in promoting this
agenda. UNCTAD's subsequent research and technical assistance have all focused on
mainstreaming these two overriding objectives into public policies in the economic
sphere. For example, the Trade and Development Report 2012: Policies for Inclusive
and Balanced Growth showed that inclusive growth and development require active
employment and redistribution measures, as well as supportive macroeconomic,
exchange rate and industrial policies that foster productive investment and create
decent jobs, and a better distribution of income that would strengthen aggregate
demand, investment and growth. This in turn should accelerate employment creation,
including in high productivity activities that offer better remuneration and social
benefits, thereby reducing inequality. Another example is the World Investment
Report 2012: Towards a New Generation of Investment Policies that introduced the
Investment Policy Framework for Sustainable Development (see below).
28 Report of the Panel of Eminent Persons
b) Quick responses to various crises
Over the past eight years, UNCTAD has also been able to react quickly to the multiple
crises that have plagued the world since the beginning of the Millennium, for example
in the areas of food, finance, energy, and climate change. In regard to these issues,
UNCTAD undertook research and policy analysis and made proposals on how to
address them, including through its contributions to various G20 processes.
For example, with regard to the global food crisis we launched a report in 2008
entitled Addressing the Global Food Crisis: Key trade, investment and commodity
policies in ensuring sustainable food security and alleviating poverty, which provided
possible responses to this crisis invoking trade, investment and agricultural policy
responses and measures at the national, regional and international levels. It also
outlined UNCTAD’s potential contribution to addressing the crisis.
This issue was then picked up in our 2010 Technology and Innovation Report:
Enhancing Food Security in Africa Through Science, Technology and Innovation, which
focused on the challenges of improving agricultural performance in Africa. The report
analyzed the role of technology and innovation in raising agricultural production and
incomes of farmers (including smallholders), addressing poverty, improving food
security and achieving broader economic growth and development.
And in 2011, in response to a G20 leaders' request concerning price volatility in food
and agricultural markets, we -- together with FAO, IFAD, IMF, OECD, WFP, the World
Bank, the WTO, IFPRI and the UN High Level Task Force -- developed the Agricultural
Market Information System (AMIS). This is a collaborative food information and policy
initiative, which works to improve data reliability, timeliness and frequency, as well as
enhance policy coordination in times of crisis through a Rapid Response Forum.
Another example is the 10-year Pan African Cotton Road Map (PACRM) that got under
way in mid-2012 and which resulted from an UNCTAD multi-stakeholder forum held in
December 2008. This brought together the entire cotton value chain, from farm to
factory. Supported by the Secretariat of the ACP Group of countries, the European
Union, the Common Fund for Commodities, and the Centre for the Development of
Enterprise, this initiative will provide for effective continental collaboration in
addressing the issues plaguing the cotton sector in all sub-regions. Currently UNCTAD
Addressing key economic issues to advance sustainable development: Ideas for actions 29
is in dialogue with the African Union Commission and the NEPAD Planning and
Coordinating Agency (NPCA) to assume the leadership of the PACRM.
c) The developmental State
The Least Developed Countries Report 2009: The State and Development Governance
put forward the notion of the "developmental State" – an endeavor to mainstream
economic growth and development at the forefront of government preoccupations.
We also defined the developmental State structurally as society espousing “embedded
autonomy”, which gives it both the legitimacy and the capacity to pursue its objectives.
This developmental State should seek to harness local, bottom-up problem-solving
actions through stakeholder involvement and citizen participation that create and
renew the micro-foundations of democratic practice. It should also embrace a wide
range of development governance modalities and mechanisms within a mixed
economy model to harness private enterprise through public action to achieve a
national development vision.
d) A new generation of investment policies focusing on sustainable development
In 2012, UNCTAD launched its Investment Policy Framework for Sustainable
Development (IPFSD). In direct response to the Doha Mandate, the IPFSD approach
makes sustainable development the central concern and translates sustainable
development principles into specific policy components and provisions. It addresses a
full range of foreign investment policies and issues in a systemic manner, from design
criteria to policy implementation and institution-building, as well as effectiveness
assessment. It seeks to foster synergies between national and international policies,
and between investment and other policies (such as policies on trade, competition,
and taxation). It also takes into account the local needs of countries, providing options
to adapt and adopt, together with analysis of the implications of the various options.
The IPFSD puts emphasis on the relationship between foreign investment and
sustainable development, advocating an approach that strikes a balance between the
pursuit of economic growth by attracting and promoting FDI, and the need to protect
people and the environment. The IPFSD also aims to rebalance the rights of the State
and the obligations of firms.
30 Report of the Panel of Eminent Persons
e) Soft standards, including the Principles for Responsible Agricultural Investment
(PRAI), and the Principles for Responsible Sovereign Borrowing and Lending
In 2010, UNCTAD – together with the FAO, IFAD, and the World Bank – launched the
Principles for Responsible Agricultural Investment (PRAI) in response to growing
concerns about foreign investment in agriculture and land acquisition in developing
countries. A product of the World Investment Report 2009: Transnational Corporations,
Agricultural Production and Development, the PRAI has been endorsed by the General
Assembly and the G20 and are now being field tested in 10 African and 5 South-East
Asian countries.
Also in 2009, UNCTAD initiated work on the Principles on Promoting
Responsible Sovereign Lending and Borrowing. These were first released in May 2011,
and subsequently revised (second draft in November 2011) after an extensive national
and regional consultative process. The main aim of these principles is to reduce the
likelihood of a sovereign debt crisis arising by encouraging the parties to act in a
responsible manner, and by establishing clear responsibilities on both the borrower´s
and the lender´s side. These principles recognize that debt crises cannot be eliminated,
however, prudent and responsible behavior can play an important role to reduce their
prevalence and the cost associated with such crises.
f) Filling the gap of enterprise development policies with the entrepreneurship
policy framework
Gaining from participation in the global economy through trade and investment
requires a vibrant enterprise sector. However, many developing countries lag behind
in this regard. In addition, they lack the policies and tools to develop and nurture a
receptive domestic enterprise sector. In order to fill this crucial policy gap in
developing countries, UNCTAD developed its Entrepreneurship Policy Framework for
policymakers in developing countries to use in devising entrepreneurship policy. While
there is no one-size-fits-all answer to promoting entrepreneurship, research by
UNCTAD has identified six priority areas for policy focus that have a direct impact on
entrepreneurial activity, including establishing a national entrepreneurship strategy, a
conducive regulatory environment, and a policy focus on education and skills,
innovation and technology, access to finance, and awareness-building and networking.
Enriched with examples of success stories from developing and transition economies,
this framework helps policymakers determine the appropriate actions to take to
Addressing key economic issues to advance sustainable development: Ideas for actions 31
develop the entrepreneurial network in their countries, as well as to build effective
implementation, monitoring and evaluation systems.
g) Aligning policies with development strategies
At the national level, UNCTAD has conducted numerous policy reviews at the request
of developing country governments, including in the areas of investment, science,
technology and innovation, services, and competition. These reviews have been done
with cognizance of countries' development strategies and industrial policies. Many of
the recommendations of these reviews were implemented and generated impact. For
example in the investment area, the Investment Policy Reviews resulted in more than
200 implemented recommendations, 40 per cent of which with UNCTAD's assistance.
And in most cases, the implementation of IPR recommendations has led to significant
improvements in the business climate. This is demonstrated by the performance of IPR
beneficiaries in the World Bank's Doing Business Indicators, where 7 out of the top 10
performers between 2005 and 2012 were IPR countries. IPRs of countries such as
Belarus, Morocco, Nigeria, and Viet Nam have been presented to the highest policy
level, including Presidents and Chiefs of Government, and translated into concrete
policy actions in these countries. This effectively provided hands-on support in building
the developmental State.
h) Contribution to highest-level policy discourse
UNCTAD has been called upon to provide contributions to the highest level of
international and national policymaking. Internationally, this includes our direct
contributions and follow-up to the G20 Summits, the G8, APEC, ASEAN, the
Commonwealth, COMESA and the LDC IV Istanbul Plan of Action.
For example, for G20 Leaders, UNCTAD, together with OECD, reports on investment
policies on a regular basis. This has led to 8 reports so far, with the next report due in
June 2013. Since the Washington Summit, G20 leaders acknowledge this work as an
important tool in dealing with the economic and financial crisis by reigning in
protectionism.
Another example is UNCTAD's consistent advice and advocacy with African leaders that
regional integration on the continent needs to be deepened and widened to move
beyond trade so as to reap the full economic benefits for development, including in
32 Report of the Panel of Eminent Persons
the exchange with development partners. Our substantive backstopping of African
Union Ministerial meetings on trade and related issues has moved this matter to the
highest priority level, with leaders now calling for continent-wide economic integration.
B. Institutional achievements
In terms of institutional achievements, UNCTAD has successfully improved the
synergies between its three pillars of work, and made enormous progress in beefing up
and streamlining its intergovernmental processes.
a) Streamlining intergovernmental machinery
As an outcome of UNCTAD XII, and following a recommendation of the first Eminent
Persons' Panel Report, UNCTAD's intergovernmental machinery was rationalized,
including through consolidating the Commissions and establishing multi-year expert
meetings. This contributed to more substantive deliberations and relevant outcomes,
such as policy toolkits for member States to adapt and adopt.
b) Extending UNCTAD's constituents
Similarly, in pursuit of a recommendation from the first Panel, UNCTAD created new
platforms to effectively engage with development stakeholders in key issue areas of its
work, thereby effectively ensuring their participation in the global debate. These
platforms include the World Investment Forum, the Public Symposium, the Global
Commodity Forum, the Global Services Forum and the Innovation and Technology Day.
This also includes the Virtual Institute and our partnerships with civil society and
business (through the International Chamber of Commerce). Through these forums
and initiatives, UNCTAD expanded its constituents considerably and effectively
engaged all development stakeholders.
c) Creating and taking the lead in the Chief Executive Board on trade and
productive capacity
UNCTAD took the lead in creating the UN Inter-Agency Cluster on Trade and
Productive Capacity. This is an interagency mechanism to coordinate trade and
Addressing key economic issues to advance sustainable development: Ideas for actions 33
development operations at the national and regional levels within the UN system. The
Cluster makes concrete and direct contributions to the UN system-wide coherence
reform by coordinating participation in the UN's Delivering as One pilot countries that
are involved in the new UNDAF process and the United Nations Development Group
(UNDG) machinery. This has increased UNCTAD's direct development impact on the
ground, and furthered its standing in the UN family of organizations.
d) Effectiveness and efficiency at the secretariat level
Post-Accra, the organization also embarked on streamlining its publications
programme (reducing marginal publications) and consolidating its technical assistance
programmes by themes (consolidating 400+ into fewer than 200 bigger projects). We
also intensified our partnerships with agencies such as the World Bank, IMF, WTO,
OECD, regional Commissions and regional organizations. All of this resulted in
considerable cost savings and synergies. In the same vein, we improved our outreach
and information policy through implementing a new communication strategy and by
upgrading our websites. All of these efforts were guided by my "3C" policy of increased
Communication, Coordination and Concentration.
e) Creating synergies and cross-pollination between the three pillars of work
Synergies and cross-pollination were also created between the three pillars of work,
strengthening their mutually reinforcing nature. For example, in the area of enterprise
development, the work of the multi-year expert meeting on developing the
Entrepreneurship Policy Framework was reinforced by the lessons learned from
technical assistance provided through Empretec, which in turn benefited the research
on various aspects of the Framework.
f) Creating synergies within the secretariat
Work in various areas was strengthened through a realignment of secretariat functions.
For example, work on technology was concentrated in the Division on Technology and
Logistics and the work on Africa was combined with the work on Least Developed
Countries. At the same time, work on gender, South-South cooperation and
commodities was placed in separate units to emphasize the importance and cross-
cutting nature of these areas.
34 Report of the Panel of Eminent Persons
III. My expectations for UNCTAD's future
It is with these achievements in mind that I provide my personal comments on the
recommendations of the second Eminent Persons' Report, and also my personal
reflections on the future of UNCTAD. I wish to emphasize at this point that the second
report of UNCTAD Panel of Eminent Persons is addressed to me as the Secretary-
General of the organization and constitutes the advice of the Panel. It in no way
infringes on the mandate of the organization, and/or the prerogative of member
States to set this mandate and guide the organization's work. Rather, the
recommendations by the Eminent Persons are intended for the consideration of
members States.
A. Comments on the recommendations of the Eminent Persons' Panel
The second report commends UNCTAD on its success in implementing the first report's
recommendations, with the notable exception of the tenth recommendation. This
recommendation had called for member States to overcome confrontational attitudes,
build trust and create a "comfort" zone conducive to constructive engagement to
nurture a spirit of development partnership and "shared success". The Eminent
Persons point out that during the process of UNCTAD XIII confrontational attitudes
prevailed despite the goodwill of member States. I could not agree more with this
observation. In the same context, I agree with the Panel's statement that the process
of strengthening the impact and relevance of the organization is a continuous one and
that we cannot rest on our laurels if we are serious about helping the poor. Here, we
can disagree about the means, but we can surely not argue about the end. This is
where we have failed at times, in my view, both in Doha and in subsequent
deliberations about the organization's management and how to improve its
effectiveness and efficiency.
In this regard the specific recommendations of the Panel – organizing staff/delegate
seminars and brainstorming sessions, calling for the participation of Permanent
Representatives in critical meetings, as well as integrating the Commission on Science
and Technology for Development into UNCTAD’s intergovernmental machinery whilst
fully preserving its mandate and work programme – all have merit and deserve serious
consideration by member States.
Addressing key economic issues to advance sustainable development: Ideas for actions 35
I appreciate the Panel's central developmental value – sustainability and inclusiveness
of development rooted in good governance at national and international levels – as it
reflects what we have achieved in UNCTAD XIII, not least on the basis of my report to
the Conference entitled "Development-led globalization: Towards sustainable and
inclusive development paths". Undertaking to define “development-centered”
globalization, setting out related indicators and benchmarks to measure outcomes
within this paradigm, and periodically assessing the impact of globalization against
these benchmarks, are natural steps in the endeavor to achieve inclusive growth and
sustainable development. I urge the organization to not shy away from this important
challenge in the years to come, including in the context of the formulation of the post-
2015 sustainable development goals.
The Eminent Persons' Report also contains recommendations for new global initiatives
in ten issue areas where UNCTAD could engage itself in the pursuit of development-
centered and inclusive globalization. In the following I will address each in turn.
a. The recommendation to build a “Development Observatory of Global Economic
and Financial Governance” and a “Virtual Consortium of Think Tanks” on
globalization and new development strategies follows naturally from the first
Panel's recommendation to establish a global network of development think
tanks. Safeguarding and advancing developing countries' interests in the
emerging new global economic and financial governance structures must be at
the heart of the UNCTAD endeavor. Utilizing a "soft" approach of undertaking
"development audits" of any major suggested changes to the future global
financial and economic architecture translates the Doha mandate into a
meaningful tool for the international community.
b. The recommendation to create a platform for fostering dialogue and synergy
among regional trade blocs provides a concrete idea of how UNCTAD could
contribute to overcoming the uncertainties associated with the completion of
the Doha Round. This approach would contribute to defining the regionalism
trend as an opportunity for, rather than a threat to, multilateralism. The recent
meetings of the Trade and Development Commission, as well as a recent expert
meeting in the context of investment for development, brought together
numerous representatives of regional organizations to exchange experiences
and views, and learn from each other. The success of these meetings bodes
well for this undertaking on a bigger scale in the context of the Trade and
Development Board, and I welcome this idea.
36 Report of the Panel of Eminent Persons
c. In the area of commodities, the Panel suggests creating an "Aid-for-
diversification facility" to help commodities-dependent low-income countries
pursue a sustained growth path with rising incomes and poverty reduction. The
recent commodity price boom has once again underlined the importance of
this recommendation, as many of the commodity-dependent developing
countries that benefited from the recent boom face difficulties in channeling
the gains into productive capacity-building for economic diversification. Such
aid is not just an issue of financial support but rather of knowledge
dissemination and technical assistance. UNCTAD has long taken a holistic
approach to commodity issues, and its Commodity Unit is well placed to take
up this challenge.
d. Recognizing the absence of a multilateral investment regime, the Panel calls for
building a multilateral platform for the coordination of international
investment policies that are inclusive, transparent and participatory in nature.
This is an area of high priority as the current international investment regime
with its almost 3,200 IIAs is highly atomized, multilayered, and full of overlaps,
inconsistencies and gaps. This is what we have pursued with the creation of the
World Investment Forum, and I urge member States to consider this forum as a
platform to further pursue this idea. With its multi-stakeholder approach and
global reach, the World Investment Forum contains all the elements necessary
to ensure international coordination on investment matters is comprehensive
and representative. The past interactions of the World Investment Forum are
also indicative that this forum will ensure that outcomes will aim to maximize
the benefits of investment for sustainable development and minimize its
potential negative effects. With the creation of the World Investment Forum,
UNCTAD has lived up to its responsibility as the focal point within the United
Nations system for all matters related to foreign investment and transnational
corporations.
e. The Panel recognizes global value chains as one feasible option for pursuing
development, and recommends developing operational strategies for
strengthening the productive capacity of developing countries’ enterprises in
order to become part of global supply chains and maximize the development
benefits thereof. This falls squarely within UNCTAD's area of work as
reconfirmed by the Doha mandate. It addresses one of the most crucial issues
of today's world trading system, which is the phenomenon of global supply
chains and the need for developing countries to link up to them. As we have
seen in recent publications from UNCTAD, the WTO and the OECD, integration
into global supply chains needs to form a critical element of development
Addressing key economic issues to advance sustainable development: Ideas for actions 37
strategies, and equipping developing country enterprises with the means to do
so is of the utmost importance to the development cause. I endorse this
recommendation.
f. The recommendation to offer an internationally-recognized platform to retired
professionals and skilled emigrants for volunteering their services to
disseminate "soft" technology provides an innovative idea that merits careful
consideration. The notion of altruistic social engagement is gaining ground
worldwide, and UNCTAD could well help to give substance to this endeavor in
the areas of technology and skill dissemination. Regardless of whether it is
called "UN ambassadors for technology for development" or "Grey Tech Corp"
volunteers, what counts is the need to provide a platform for the organization
of such an exchange and the need to recognize the personal effort for
development. This is a cause that suits UNCTAD well and that could also
increase the organization's direct impact on the ground for the poor and
marginalized.
g. The recommendation to undertake, in collaboration with other international
organizations working in this field, research and policy analysis on the
economic development impact of migration is in line with the Doha mandate.
The recent crisis has once again underlined the importance of migration for
development finance, when remittances proved to be more resilient than other
financial flows. However, the crisis also revealed the vulnerability of certain
groups of migrants, particularly women. As a 2011 UNCTAD report stated,
remittances (which amounted to $406 billion in 2012 according to the World
Bank), can become a solid resource base for leveraging human development,
financial inclusion, and investment in a productive capacity. However,
leveraging this potential is fraught with difficulty. Work in this area is needed,
and I endorse this call for UNCTAD to engage with other organizations on this
matter.
h. As concerns the green economy, the Panel recommends developing a positive
agenda at the firm level, and setting up an international green technical
assistance centre to help developing countries build the capacity to grasp green
economic opportunities and meet the increasingly stringent environmental
requirements that the new globalization will inevitably bring. This
recommendation captures the current climate change-related challenges and
opportunities at the firm level and should be wholeheartedly endorsed.
38 Report of the Panel of Eminent Persons
i. The recommendation to identify and advocate a differentiated approach for
women in UNCTAD’s core areas of work to help mainstream gender issues into
economic and sustainable development-related policymaking, is in line with the
Doha mandate. UNCTAD can fill this gap by undertaking, in the respective areas
of trade, investment and technology, a survey on the extent to which the
gender dimension figures in development strategies. I have for long called for
proactive measures to advance the cause of women in development, and
spearheaded the institutionalization of departmental women focal points in the
UN system. At the same time it needs to be recognized that differentiation is
warranted with regard to where a women-focused rather than a gender-
neutral approach should be pursued. The Eminent Persons' call for stocktaking
on gender issues within UNCTAD's core areas of work is timely and highly
necessary to do justice to the gender issue in its work programme.
j. The last recommendation of the Panel concerns undertaking work related to
the informal sector. This is in my view one of the most important
recommendations of the Panel, as it highlights an issue that is at the heart of
the development malaise, and that needs tackling if we are to succeed in
addressing and achieving sustainable development and inclusive growth goals.
UNCTAD should specifically focus on this issue in its research, technical
assistance and consensus-building activities.
Overall, the second report of the UNCTAD Panel of Eminent Persons offers a wealth of
valuable ideas for concrete action that could contribute to addressing the
development problem in the new phase of development-centered globalization. These
ideas build on UNCTAD XIII and fall within UNCTAD's mandate and core competencies.
As pointed out by the Panel, they are seeds that could be further developed and
adapted, and then adopted by UNCTAD, including in the broader context of the UN’s
social and economic endeavour and the transition of global development efforts from
the Millennium Development Goals to the SDGs. If pursued by UNCTAD, the
recommendations of the Panel could go a long way to further increase the
organization's development role and impact. I applaud the members of the Panel for
their forward-looking ideas and the trust they have expressed in the organization and
its leadership. I endorse all of their recommendations, and it is my sincere hope that
member States will carefully consider them.
Addressing key economic issues to advance sustainable development: Ideas for actions 39
B. My personal expectations and visions for the future of UNCTAD
The second report of the UNCTAD Panel of Eminent Persons is released on the eve of
my departure from the organization after eight years at its helm. Together with the
first report of the Panel and my report to UNCTAD XIII, one could say it constitutes my
legacy to the organization and its future. It is hence opportune at this point that I add
my personal reflections concerning my tenure as Secretary-General and UNCTAD's
future.
I leave a strengthened and reinvigorated organization behind that stands ready to do
its utmost to help developing countries and the world as a whole to foster a new and
successful development path. Under my leadership, UNCTAD has successfully shifted
its role from providing an alternative view towards actively shaping the new
development paradigm. With UNCTAD XIII, inclusive growth and sustainable
development are now firmly embedded in the international development policy
discourse. UNCTAD also succeeded in improving the functioning of its three pillars of
work, and in streamlining and enriching its intergovernmental processes. UNCTAD is in
a better position than ever before to fulfill its mandates and mission.
Still, there remain some challenges ahead, in the immediate and mid-term future. The
most important one, in my mind, is to ensure that UNCTAD remains a platform for
frank and open deliberations, including on highly sensitive and highly contentious
development issues and bold ideas, and thus a comfort zone for constructive
engagement for all development stakeholders to foster partnerships. UNCTAD is only
a development think tank and a forum for brainstorming ideas and initiatives for
development. It is not a negotiating body. I urge member States to keep this in mind,
as this allows open-mindedness and space for deliberations of new ideas and new
initiatives. Only such an approach will enable the organization to play a key role in
multilateral consensus-building.
UNCTAD also needs to effectively respond to the needs of developing countries and
economies in transition, and effectively support the most vulnerable (least developed
countries, land-locked developing countries, small island developing countries and
countries in sub-Saharan Africa), with a focus on pragmatic solutions. An immediate
challenge will be to effectively contribute to the formulation of the SDGs and the post-
2015 development agenda, with simple and pragmatic suggestions. I sincerely hope
that UNCTAD will play a crucial role in the process of formulating the SDGs,
contributing to the aspects of trade, investment, technology and related dimensions.
40 Report of the Panel of Eminent Persons
Here, there is need to emphasize UNCTAD's core competences, in particular its cutting-
edge research on the 4 "i"s of interdependence (South-South, North-South, and
triangular cooperation), investment, innovation, and institution. In terms of
interdependence, North–South, South–South and triangular cooperation and
partnerships should be mobilized, strengthened and more effectively channeled
towards the maximization of development gains from participation in international
trade in goods, services and commodities. This should extend to measures building and
strengthening productive capacities through enterprise development and investment.
For investment, innovation and institution-building, it is clear that there is the need for
a single SDG dedicated to each of these issues.
Finally, as I already alluded to above, the process of strengthening the impact and
relevance of the organization is a continuous one and UNCTAD cannot rest on its
laurels. Improvements to our results-based management approaches, including
through the incoming Umoja system, which provides a harmonized, simplified and
real-time approach to the UN's management of its finances, resources and assets will
continue to be both possible and necessary, and I have no doubt that the organization
and its staff will stay the course.
C. Development passion
Having worked for the development cause my entire career, first with a national focus
and then on the international stage (first as Director-General of the WTO and then as
the Secretary-General of UNCTAD), I have witnessed first-hand what the development
endeavor means for the poor, and how international engagement through trade,
investment and technology can help lift millions out of poverty and misery, if properly
managed and administered. I firmly believe that it is possible to overcome poverty and
marginalization through compassion and solidarity that does not lose sight of the
individual who is in danger of falling behind, going hungry to bed every night, without
shelter and without hope for any better future. This is what drives my passion for
development. For 40 years, the international community has engaged in development
assistance to LDCs, but during this time only three countries graduated to developing
country status and the overall number of LDCs increased from 23 to 49. The failure to
help LDC graduate is a collective one. This is what has driven my resolve to reinvigorate
UNCTAD as a development institution, and to increase the organization's impact and
relevance on the ground for inclusive growth and sustainable development. The Accra
Accord and the Doha Mandate, as well as the two reports of the UNCTAD Panel of
Eminent Persons that I established, bear witness to this.
Addressing key economic issues to advance sustainable development: Ideas for actions 41
Working as UNCTAD's Secretary-General has been a profound privilege for me, and I
leave this organization with deepest respect for the daunting task it faces, a profound
admiration for the people that make it work, and the greatest hope for its future.
Fifty years after the first United Nations Conference on Trade and Development
concluded, the preambular words of the Final Act of UNCTAD I still remain relevant: "In
an age when scientific progress has put unprecedented abundance within man's reach,
it is essential that the flows of world trade should help eliminate the wide economic
disparities among nations."
The world has changed tremendously. But UNCTAD's raison d'etre remains as valid as
in its founding year. The task ahead is herculean, and requires the joint efforts of all
development stakeholders.
* * *